Sebi clarifies position on Digital Gold, says no new regulations are being drafted

India's capital markets regulator, the Securities and Exchange Board of India (Sebi) Chairman, Tuhin Kanta Pandey, on Friday, 21 November 2025, clarified that the regulator is not considering any new rules framework for digital gold at this stage.

On the sidelines of the National Conclave on REITs and InvITs 2025, the Sebi chief said that in India, regulated gold-related investments can only be made through exchange-traded funds (ETFs) offered by mutual funds or through other tradable gold securities.

These gold ETFs and other tradable gold securities are the only alternative investment products which fall under Sebi's regulatory purview, which the regulator continues to keep its focus on.

“Gold investment can be done either through gold investment ETFs, which mutual funds offer, or through tradable gold securities. These are the products included in the regulated space, so for now, we are focused only on these products,” Tuhin Kanta Pandey said.

Is there no protection for digital gold?

In an official announcement on 8 November 2025, the capital markets regulator said that the investor protection mechanisms will not be applicable for digital gold or e-gold products as they are not identified either as securities or as commodity derivatives.

“Investors/participants are made aware that none of the investor protection mechanisms under securities market purview shall be available for investments in such Digital Gold/E-Gold products,” said Sebi.

Sebi also noted that it has observed several online platforms offering investors digital asset options like digital gold and other e-gold products.

Spreading awareness for the stock market investors, Sebi also flagged that these digital asset options are being marketed as alternative investment options for physical gold, even though they are not secured under the protective norms.

What is digital gold?

Digital gold is promoted as an alternate method of purchasing gold online, which is backed by physical gold stored in secure and insured vaults of the companies which are selling these digital investment options.

Major companies like PhonePe, Google Pay, and Paytm via SafeGold, and other jewellery companies like CaratLane, Tanishq and MMTC-PAMP website are places giving buyers the option to invest in these digital gold offerings.

However, investors should be aware that these investment options are not secured under the Sebi norms and will also attract goods and services tax (GST), capital gains tax, and short-term gains tax dues.

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